“The property is good performer and sold at an attractive price because there was substantial deferred maintenance,” HFO Partner Cody Hagerman said. “The buyer is well versed in property management and will be making the necessary improvements that should allow him to raise rents and increase value.”

Forest Canyon Village, a 16-unit property 102000 block of Northeast 13th Avenue, sold for $990,000, which represents $61,875 per unit and $61.88 per square foot. The buyer was John Layerzaph of Bend and the seller was Stan Roman of California. HFO represented the seller.

Constructed in 1983 Forest Canyon Village consists of four four-unit buildings spread over 2.13 acres. All units have two bedrooms and two bathrooms. Amenities include garages and wood-burning fireplaces. The cap rate was 7.39%, assuming 5% vacancy and expenses totaling 46.8% of scheduled gross annual income.

“With each building sitting on its own tax lot and having fewer than five units the buyer was able to finance the acquisition with four separate residential loans instead of one large commercial loan,” Hagerman said. “As a result, he was able to obtain 70% financing in an otherwise tough lending environment.”

(c) HFO Investment Real Estate, LLC

HFO Investment Real Estate LLC

2424 SE 11th Avenue

Portland, OR 97214 (503) 241-5541

Cody Hagerman, Principal Broker, licensed in Oregon & Washington

Portland-based HFO was founded in 1999 and specializes in the apartment sector of the commercial real estate market. The company is known for more than its ability to attract the largest possible pool of buyers. By offering additional client benefits including complimentary industry-specific events, market news, and original video programming via HFO-TV and Multifamily Marketwatch podcasts. HFO is a thought-leader within its category. From its inception, HFO has operated in sharp contrast to most of its industry competitors, using intra-office collaboration to provide service to more customers through sales velocity and loyal client relationships.